Key takeaways
- Having launched Jack Daniel’s Country Cocktails some 30 years ago, Brown-Forman has been building up its portfolio of RTD alcohol
- RTD alcohol is one of the key - and few - spots of growth for the alcohol industry
- Brown-Forman saw net sales decrease 1% over the year
- Whiskey products performed strongly (up 3%) but tequila sales were down 4%.
RTD alcohol continues its rise: and proved to be a bright spot for Brown-Forman’s 2026 results. The spirits giant has put its weight behind the category: now with a range of RTD (ready to drink) and RTP (ready to pour) products. That’s headed up by Jack Daniel’s RTDs: but with an increasing range of other products.
So what’s the secret to success?
For CEO Lawson Whiting, it starts with something as simple as making sure products hit that RTD spot: with a light, refreshing option that consumers turn to the category for.
Brown-Forman FY 2026
- Brown-Forman's fourth quarter net sales rose 2%; while FY2026 sales were down 1%
- Net sales in the US declined 7%, driven by the end of the sales, marketing and distribution partnership with Champagne company Korbel: and lower volumes of Jack Daniel's Tennessee Whiskey
- Net sales in developed international markets were flat; while net sales in emerging markets rose 14%.
- Travel retail net sales rose 6%
But it’s also about the brand power behind the innovations. That’s what’s worked for the company with Jack Daniels and Coke (a double whammy on brand power with Coca-Cola) and a strategy that is now being applied to other brands.
And now it’s about expanding successful innovations globally: such as the US launch of New Mix - Mexico’s top RTD cocktail with a 5% ABV - in November.
“New Mix is a massive brand in Mexico,” said Whiting. “It’s very well known among Mexican consumers, both in Mexico and the US. It’s been a massive driver for several years in a row. We’ve got a set of consumers that know the brand already, and we want to go after that inside the United States.”
The drink launched in nine US markets and is already the eight largest contributor to RTD category growth, he added.
Innovation is a key growth driver
Such innovations are a bright spot for Brown-Forman in a difficult spirits market, say analysts from TD Cowen. “Innovation remained a key growth driver in Q4, led by Jack Daniel’s Blackberry, which continues to surpass expectations.
"Alongside this, New Mix is gaining traction in the US, leveraging strong brand awareness among Mexican-American consumers."
Pernod Ricard and Sazerac?
There’s been plenty of drama for Brown-Forman over the last three months.
At the end of March, it confirmed it was in discussions with France’s Pernod Ricard to create a trans-Atlantic spirits giant: discussions which came to a halt at the end of April.
That was at the same time as a potential deal with Kentucky’s Sazerac: which the company confirmed was being explored but has not commented on since.
Whiting was only prepared to say that the company had failed to reach an agreement amenable to both Brown-Forman and Pernod Ricard.
“Brown-Forman regularly explores strategic opportunities in the normal course of business, evaluating every opportunity against the standard of long-term shareholder value,” he said. “In this particular case, we were unable to reach mutually agreeable terms.”
The company’s focus, he added, is on expanding its geographical footprint, building brands, and enhancing operational efficiency.
